AstraZeneca (NYSE: AZN) announced the completion of the licensing agreement between MedImmune, its global biologics research and development arm, and Allergan plc (NYSE: AGN), for the global rights to MEDI2070.

MEDI2070 is an IL-23 monoclonal antibody currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease and ready for Phase II for ulcerative colitis, diseases that sit outside AstraZeneca's three main therapy areas.

AstraZeneca will not retain a significant ongoing interest in MEDI2070. Therefore, income from the transaction will be reported as Other Operating Income in the Company's financial statements, including the upfront payment, which will be booked in the fourth quarter of 2016, and development and sales-related milestones and tiered royalties on potential sales of the medicine.